OMNI

Can a lump sum be paid by Standing order?

Not at this time. Lump sums are paid by cheque or cash.

Can a Trustee be appointed at any time?

Not in all cases. If the beneficiary is preferred (policy issued prior to August 1995 and the beneficiary is a child), a Trustee cannot be appointed now. Otherwise a Trustee can be appointed at any time.

Can an Omni policy be assigned?

Yes. A customer can have his/her policy assigned or hypothecated.

Can I add another owner to the policy?

No. Each policy should have one policy owner. Note: There are Omni Original to Omni 6 policies with “Joint owners”. For these policies, you must determine if the clause is “and/or” or “and”. This will indicate who should sign.

Can I change the beneficiary on my a policy?

Yes, but if the beneficiary is a preferred or irrevocable beneficiary, specific conditions apply. These beneficiaries must sign in agreement to all beneficiary changes.

Can the policy owner decide to make someone else the policy owner?

Yes, but the new policy owner must have an insurable interest in the life insured. In making this change, the current policy owner gives up all rights to the policy.

Does the Contingent owner have rights to the policy?

No. The contingent owner has no rights during the lifetime of the policy owner.

How do I treat a policy with the premium due date behind?

Try to collect the outstanding premiums. Note: There are some policies that the due date is far behind (Omni Original to Omni 6). Explain to the client that the charges continue to be deducted from the accumulated fund. Some service requests require that the premiums are paid up to date, e.g. changes to the premium amount and frequency.

How do I treat a policy with the premium due date far in advance?

Advise the client that the premiums are paid far in advance. Note: This is seen with several Omni Original to Omni 6 policies. This may be as a result of the customer:

Consistently paying an amount in excess of the contractual premium. Suggest that he/she make a policy change to increase the contractual premium to the amount being paid.

Paying adhoc amounts in excess of the contractual premium. Suggest that for amounts of $10,000.00 (the minimum lump sum premium) and over, that he/she place these as lump sum premiums.

How should I treat a policy which is coded as a single premium policy?

These policies are not “true” single premium policies and therefore the policy due date is often far behind. Remind the customer that the charges are being deducted from the accumulated fund.

I am the beneficiary on a policy. Can you tell me the accumulated value?

No. The policy owner is the only person who has the right to request information about the policy. If the policy is assigned, the Assignee also has that right.

Is my policy covered under the Jamaica Deposit Insurance Corporation?

No it is not but the company is governed by the Insurance Act 2001 and regulated by the Financial Services Commission.

The policy owner has died and the Contingent owner wants to know what is required.

Verify that the Contingent owner is named on the policy (NCBIC verification required for Omni Original to Omni 6). Request proper identification (Passport, Driver’s License, Voters ID) of the Contingent owner and Proof of Death of the policy owner. Complete a change form to change the ownership, the Contingent Owner will sign as both the Contingent Owner and the Owner.

What are these expenses shown on my statement?

The expenses include the cost of insurance deducted to keep your policy coverage in force, the policy fee which is an administrative charge, and any premium taxes.

What is the advantage of setting up a Standing Order?

Premiums will be paid consistently and on time.

What is the tax advantage of Omni?

Premiums paid on the Omni policy are tax-free up to specific limits. These are:

Contractual premiums up to $60,000.00 per annum

Additional lump sum premiums up to $1M per annum provided that no withdrawals are made from the lump sum premium within five (5) years.

What should I do if the client's TRN is not on CRM?

Collect the TRN and send to NCBIC for update on the policy file.

What should I do if the policy owner's date of birth is not in CRM?

If the customer has evidence of age (passport or birth certificate), complete a policy change form and attach a copy of the evidence and send to NCBIC for update to the policy file. If the customer does not have the evidence, ask him/her to bring it to the Bank on the next visit.

When is a Trustee appointed?

A Trustee is appointed when the beneficiary is a minor. In the event that the insured dies while the beneficiary is a minor, the death benefit is paid to the trustee who is expected to act in the best interest of the minor child.

Why appoint a Contingent owner?

A contingent owner is appointed when the policy owner is not the life insured. This individual will assume ownership of the policy if the policy owner dies before the insured.

Why are preferred and irrevocable beneficiaries required to sign to authorize the policy holder to make withdrawals or specific policy changes?

There is a trust created when a beneficiary falls in the preferred class or when the beneficiary is named irrevocable. This means that the proceeds of the policy were intended for the beneficiary. Note: On the Omni Original to Omni 6 policies, there are many policies in which the policy owners are not aware of this condition. This was never the intention. Transactions have already been allowed on some of these policies and the customer may say this. Please refer these cases to NCBIC.